- Business activity in the U.S. manufacturing sector declined at a slower pace than expected in December.
- The US dollar index remains negative near 109.00.
Business activity in the U.S. manufacturing sector continued to decline, although at a slower pace in December, with the ISM Manufacturing PMI rising to 49.3 from 48.4 in November. This reading was better than market expectations of 48.4.
The PMI Employment Index fell to 45.3 from 48.1 over the same period and the Prices Paid Index rose to 52.5 from 50.3, highlighting stronger price pressures. Ultimately, the New Orders Index improved to 52.5 from 50.4.
Commenting on the survey results, “demand increased, production execution was in line with November results (and company plans), staff reductions continued (but should end soon), and price increases were marginal,” said Timothy R. Fiore, president of the Institute for Supply Management (ISM) Manufacturing Business Survey Committee and continued: “Fifty-two percent of manufacturing gross domestic product (GDP) contracted in December, down from 66 percent in November.”
Market reaction
The US Dollar Index showed no immediate reaction to this report and was last down 0.3% at 108.95.
